Union Bank 'AAA' Rating Reaffirmed by India Ratings; Outlook Stable
Mumbai: Union Bank of India announced that India Ratings and Research Private Limited (Ind-Ra) has reaffirmed its key credit ratings, underscoring the bank's stable financial profile.
In a regulatory filing to the stock exchanges, the public sector lender confirmed that Ind-Ra has maintained its highest ratings across major instruments.
Key Rating Updates:
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Issuer Rating: Reaffirmed at 'IND AAA' with a Stable outlook. This is the highest credit rating on Ind-Ra's scale, indicating an "exceptionally high degree of safety" regarding timely payment of financial obligations.
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Tier-2 Bonds: Ratings for several Tier-2 bond series were reaffirmed at 'IND AAA' with a Stable outlook.
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Additional Tier-1 (AT1) Bonds: Ratings for multiple AT1 bond series were reaffirmed at 'IND AA+' with a Stable outlook. AT1 bonds carry higher risk than senior debt, which is reflected in the slightly lower rating.
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Certificate of Deposits: The short-term rating was affirmed at 'IND A1+', the highest rating for short-term instruments.
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Ratings Withdrawn: Ind-Ra withdrew the ratings (WD) for three specific bond instruments (two AT1 and one Tier-2), noting that the call option was exercised by the bank, meaning the bonds have been redeemed.
Significance of the Ratings
The reaffirmation of the 'AAA/Stable' issuer rating reflects the agency's confidence in the bank's standalone credit profile, supported by its systemic importance as a public sector bank, its improving asset quality, and stable capitalization.
The ratings are considered "Verified" as of January 16, 2026, and were assigned after a review by the credit rating agency.